Open Market Announces Preliminary Financial Results for Q1 2001

Apr 04, 2001, 01:00 ET from Open Market, Inc.

    BURLINGTON, Mass., April 4 /PRNewswire/ -- Open Market, Inc.
 (Nasdaq: OMKT), a leading provider of content-driven e-business solutions
 worldwide, today announced that it expects revenues for the first quarter
 ending March 31, 2001 to be approximately 20% below expectations. Based upon
 preliminary analysis which is subject to final review, revenues for the three
 months ending March 31, 2001 are expected to be in the range of  $12.5 to $14
 million.
     "Like many technology companies across the world, Open Market experienced
 the effects of the severe economic slowdown and uncertain business climate,
 which resulted in the closure of fewer licensing contracts during the
 quarter," said Harland K. LaVigne, chairman, president and CEO of Open Market.
 "While we believe that Open Market and its award winning family of content
 management and delivery products are well positioned for long-term success,
 current external economic conditions are causing prospective customers to
 delay and reevaluate their IT projects."
     LaVigne continued, "Due to these conditions, we have also made the
 difficult but necessary decision to reduce staffing by approximately 25
 percent.  This action is in direct support of our efforts to align our cost
 structure with our current revenue levels and to better position us to execute
 on our plan for profitability in the second half of 2001. The restructuring
 implemented today will result in a second quarter charge of approximately $1
 million for severance and other related charges."
     In addition, the Company announced that Lou Dobbs, chairman and CEO of
 Space.com, who joined the Open Market Board of Directors in June 2000, has
 resigned his position as a director of the Company effective March 30, 2001.
 
     Q1 2001 Webcast
     Open Market will be conducting its Q1 '01 results conference call on
 Thursday, April 26, 2001 at 5:00 p.m. EST.  Individuals interested in
 participating may do so via a Webcast available from Open Market's Web site
 (www.openmarket.com).
 
     About Open Market
     Open Market, Inc. makes content-driven e-business solutions that enable
 enterprises to better manage interactions with their site visitors, customers,
 employees, and channels. Leveraging the new Java(TM) 2 Platform Enterprise
 Edition (J2EE(TM)) standard, the Company's software products are built with
 Java, JSP and XML and are layered on top of popular application servers like
 the BEA WebLogic Server, the IBM WebSphere Application Server and the iPlanet
 Application Server. Open Market's roster of global customers includes
 publishers and media companies such as The McGraw-Hill Companies, The
 Washington Post and The New York Times Company; financial services companies
 such as Chase Manhattan Bank, GE Capital and The Hartford Financial Services
 Group; and manufacturers such as 3Com, BASF and Milacron. The company,
 headquartered in Burlington, Massachusetts, has customers in 39 countries.
 Open Market's international head office is in the U.K. with additional offices
 in Australia, Canada, France, Germany, Italy, Japan, The Netherlands and
 Singapore. Open Market can be reached by calling 1-888-OPEN-MKT (toll-free) or
 1-781-359-3000 in the U.S. or +44-1753-838-000 in the U.K. or by visiting
 http://www.openmarket.com.
 
     The following constitutes a "Safe Harbor" statement under the Private
 Securities Litigation Reform Act of 1995: This press release contains forward-
 looking statements that involve a number of risks and uncertainties.
 Important factors that could cause actual results to differ materially from
 those indicated by such forward-looking statements are set forth under the
 heading "Certain Factors That May Affect Future Results" in the Company's
 Annual Report on Form 10-K for the year ended December 31, 2000.  These
 include risks and uncertainties relating to: our history of operating losses,
 our ability to execute on our revised strategic plan, our ability to
 effectively restructure our operations, market acceptance of new product
 releases, continued development and growth of the content management product
 market, dependence on third party technology, difficulty in predicting
 quarterly results, lengthy sales cycles for our products, development and
 maintenance of relationships with our service partners, competitive pressures,
 product development and rapid technological change, attracting and retaining
 key employees, risks associated with international operations, dependence on
 intellectual property rights, possible changes in government regulations,
 dependence on the continued development and maintenance of the Internet,
 security issues, litigation and the costs thereof.
 
     Open Market, Catalog Centre, Content Centre, Content Server, Integration
 Centre, Marketing Studio, Personalization Centre, Satellite Server, ShopSite,
 Transact, and FutureTense are trademarks or registered trademarks of Open
 Market, Inc. in the United States and other countries. All other names are
 used for identification purposes only and may be trademarks of their
 respective owners.  Sun, Sun Microsystems, the Sun Logo, Java and J2EE are
 trademarks or registered trademarks of Sun Microsystems, Inc. in the United
 States and other countries.
 
 

SOURCE Open Market, Inc.
    BURLINGTON, Mass., April 4 /PRNewswire/ -- Open Market, Inc.
 (Nasdaq: OMKT), a leading provider of content-driven e-business solutions
 worldwide, today announced that it expects revenues for the first quarter
 ending March 31, 2001 to be approximately 20% below expectations. Based upon
 preliminary analysis which is subject to final review, revenues for the three
 months ending March 31, 2001 are expected to be in the range of  $12.5 to $14
 million.
     "Like many technology companies across the world, Open Market experienced
 the effects of the severe economic slowdown and uncertain business climate,
 which resulted in the closure of fewer licensing contracts during the
 quarter," said Harland K. LaVigne, chairman, president and CEO of Open Market.
 "While we believe that Open Market and its award winning family of content
 management and delivery products are well positioned for long-term success,
 current external economic conditions are causing prospective customers to
 delay and reevaluate their IT projects."
     LaVigne continued, "Due to these conditions, we have also made the
 difficult but necessary decision to reduce staffing by approximately 25
 percent.  This action is in direct support of our efforts to align our cost
 structure with our current revenue levels and to better position us to execute
 on our plan for profitability in the second half of 2001. The restructuring
 implemented today will result in a second quarter charge of approximately $1
 million for severance and other related charges."
     In addition, the Company announced that Lou Dobbs, chairman and CEO of
 Space.com, who joined the Open Market Board of Directors in June 2000, has
 resigned his position as a director of the Company effective March 30, 2001.
 
     Q1 2001 Webcast
     Open Market will be conducting its Q1 '01 results conference call on
 Thursday, April 26, 2001 at 5:00 p.m. EST.  Individuals interested in
 participating may do so via a Webcast available from Open Market's Web site
 (www.openmarket.com).
 
     About Open Market
     Open Market, Inc. makes content-driven e-business solutions that enable
 enterprises to better manage interactions with their site visitors, customers,
 employees, and channels. Leveraging the new Java(TM) 2 Platform Enterprise
 Edition (J2EE(TM)) standard, the Company's software products are built with
 Java, JSP and XML and are layered on top of popular application servers like
 the BEA WebLogic Server, the IBM WebSphere Application Server and the iPlanet
 Application Server. Open Market's roster of global customers includes
 publishers and media companies such as The McGraw-Hill Companies, The
 Washington Post and The New York Times Company; financial services companies
 such as Chase Manhattan Bank, GE Capital and The Hartford Financial Services
 Group; and manufacturers such as 3Com, BASF and Milacron. The company,
 headquartered in Burlington, Massachusetts, has customers in 39 countries.
 Open Market's international head office is in the U.K. with additional offices
 in Australia, Canada, France, Germany, Italy, Japan, The Netherlands and
 Singapore. Open Market can be reached by calling 1-888-OPEN-MKT (toll-free) or
 1-781-359-3000 in the U.S. or +44-1753-838-000 in the U.K. or by visiting
 http://www.openmarket.com.
 
     The following constitutes a "Safe Harbor" statement under the Private
 Securities Litigation Reform Act of 1995: This press release contains forward-
 looking statements that involve a number of risks and uncertainties.
 Important factors that could cause actual results to differ materially from
 those indicated by such forward-looking statements are set forth under the
 heading "Certain Factors That May Affect Future Results" in the Company's
 Annual Report on Form 10-K for the year ended December 31, 2000.  These
 include risks and uncertainties relating to: our history of operating losses,
 our ability to execute on our revised strategic plan, our ability to
 effectively restructure our operations, market acceptance of new product
 releases, continued development and growth of the content management product
 market, dependence on third party technology, difficulty in predicting
 quarterly results, lengthy sales cycles for our products, development and
 maintenance of relationships with our service partners, competitive pressures,
 product development and rapid technological change, attracting and retaining
 key employees, risks associated with international operations, dependence on
 intellectual property rights, possible changes in government regulations,
 dependence on the continued development and maintenance of the Internet,
 security issues, litigation and the costs thereof.
 
     Open Market, Catalog Centre, Content Centre, Content Server, Integration
 Centre, Marketing Studio, Personalization Centre, Satellite Server, ShopSite,
 Transact, and FutureTense are trademarks or registered trademarks of Open
 Market, Inc. in the United States and other countries. All other names are
 used for identification purposes only and may be trademarks of their
 respective owners.  Sun, Sun Microsystems, the Sun Logo, Java and J2EE are
 trademarks or registered trademarks of Sun Microsystems, Inc. in the United
 States and other countries.
 
 SOURCE  Open Market, Inc.

RELATED LINKS

http://www.openmarket.com